TSX grinds higher as Bombardier soars on Airbus deal

The Toronto Stock Exchange sign is seen in Toronto, Ontario, Canada July 6, 2017. REUTERS/Chris Helgren

Bombardier Inc ended up 15.7 percent at C$2.73 after soaring as much as 26.4 percent following a game-changing deal with Airbus SE (AIR.PA).

The Canadian plane and train maker said it would sell a majority stake in its CSeries jetliner program to the European aircraft manufacturer, a move that helps secure the CSeries’ future and solves a number of issues for Bombardier, including its dispute with Boeing Co.

The overall industrials group rose 0.4 percent.

“It could be a win-win-win scenario. I think time will tell. ... It seems like a very creative way to perhaps get a win out of the scenario,” said Kevin Headland, senior investment strategist at Manulife Investments.

Financial stocks, which makes up about a third of the index’s weight, gained 0.2 percent. Royal Bank of Canada (RY.TO) was the biggest driver of the index’s gains and was up 0.5 percent at C$99.78. Thomson Reuters (TRI.TO) was another top gainer, rising 1.7 percent to C$60.19.

“There’s no material end in sight for this slow grind higher. ... It should end the year in positive territory,” said Headland, adding that there did not seem to be too much negative momentum going forward.

Aphria Inc shares APH.TO tumbled 13.4 percent to C$6.86 after the operator of the Toronto Stock Exchange said that cannabis companies with U.S. interests would come under heightened scrutiny and could be delisted.

Canopy Growth Corp (WEED.TO) fell 4.7 percent to C$12.52, while the overall healthcare group gave back 1.6 percent.

Declining issues outnumbered advancing ones on the TSX by 132 to 108, for a 1.22-to-1 ratio on the downside.